public trustee for the act · nature and scope of activities ptact provides the act government and...

Public Trustee for the ACT

Statement of Intent

2015-16

PUBLIC TRUSTEE FOR THE ACT

The Public Trustee for the ACT (PTACT) is a Territory Authority established under the Public Trustee Act 1985.

This Statement of Intent for 2015-16 has been prepared in accordance with Section 61 of the Financial Management Act 1996.

The responsible Minister, the Attorney-General, Mr Simon Corbell MLA, was consulted during the preparation of the Statement of Intent.

The Statement of Intent, which focuses on the 2015-16 Budget Year, has been developed in the context of a four-year forward planning horizon to be incorporated, as far as practicable, into PTACT’s strategic and business planning processes.

PTACT’s 2015-16 Statement of Intent has been agreed between:

Douglas Gillespie Senior Deputy Public Trustee

Andrew Barr MLA Treasurer

Simon Corbell MLA Attorney-General

Contents

Purpose ............................................................................................................................ 1

Nature and scope of activities ........................................................................................... 2

Performance measures and targets .................................................................................. 5

Assessment of performance against 2014-15 objectives .................................................... 7

Employment profile .......................................................................................................... 9

Monitoring and reporting ............................................................................................... 11

Financial Arrangements .................................................................................................. 12

Glossary of terms and abbreviations ............................................................................... 19

PUBLIC TRUSTEE FOR THE ACT STATEMENT OF INTENT 2015-16

Purpose

The major corporate objectives of PTACT relevant to this Statement of Intent are to:

• operate as a customer service-oriented entity along commercial lines subject to the Public Trustee Act 1985;

• use benchmarking to operate at least as efficiently as alternate service providers to provide high quality services and value for money in all aspects of the Public Trustee’s operations;

• use financial practices and maintain accounts and records which satisfy the requirements of the Financial Management Act 1996, including the associated ACT Accounting Policy Manual, modelled on the requirements of Australian Accounting Standards, which fairly present the Public Trustee’s financial position and operational and cash flow results for planning and reporting purposes;

• adopt high standard operating practices to safeguard the environment and health and safety of staff;

• provide a productive and satisfying working environment for staff, and a commitment to high standards of human resource management based on the principles of equal employment opportunity; and

• undertake Community Service Obligations (CSOs) with respect to the provision of financial management services for persons with a decision-making disability, acting as attorney under Enduring Powers of Attorney (EPA), administering trusts under $100,000 in value, examination of accounts prepared by external financial managers, drafting Wills in cases of financial hardship, responding to police call-outs, arranging welfare funerals and administering low value deceased estates.

1


Nature and scope of activities

PTACT provides the ACT Government and the community with professional executor and trustee services, including the preparation of Wills, Enduring Powers of Attorney (EPA) and Estate Administration, Trust Management and Fund Management services. The Public Trustee is responsible for protecting the interests of people with a legal disability. This includes where appointed by the ACT Civil and Administrative Tribunal (ACAT) as Financial Manager and also where acting as attorney for financial matters under an EPA.

PTACT also acts as agent for the Territory in providing asset services under the Confiscation of Criminal Assets Act 2003, is the delegate for unclaimed monies and holds investment responsibility for government and non-government trust funds, including the Perpetual Care Trust under the Cemeteries and Crematoria Act 2003. The Public Trustee is also the trustee for GreaterGood - The Capital Region Community Foundation as well as Chair of the Official Visitors Board under the Official Visitor Act 2012, responsible for providing administrative support to Official Visitors.

In undertaking these functions the Public Trustee will:

• Operate as a customer service oriented entity PTACT conducts a continuous customer survey and investigates and responds to any complaint ensuring that the client receives an appropriate response. Products and services are continuously reviewed to ensure value for clients. This is achieved by reviewing fees and charges in individual cases to ensure that the fee is appropriate to the work/responsibility undertaken. The risk profile and investments for all clients with invested funds are individually reviewed on an annual basis to ensure that they reflect their respective needs.

• Use benchmarking to ensure best practice and operate efficiently The Public Trustee meets with other Public Trustees bi-annually to develop and identify best practice. Issues of current and continuing interest to Public Trustees include achieving access to the Australian Electoral Roll, introductory arrangements for the National Disability Insurance Scheme (NDIS), development of replacement Will-drafting software, appropriate fraud, risk and corruption mitigation strategies and development of an umbrella website for Australia State and Territory Public Trustees.

2


• Work collaboratively PTACT works collaboratively with other Public Trustees to share expertise, information and training. The Public Trustee will work with other Public Trustees to prepare an Expression of Interest to source a supplier to develop Will-drafting software to replace “Chameleon”. PTACT continues to play a lead role in working with other Public Trustees to develop an Australian Power of Attorney, to access the Australian Electoral Roll and for appropriate arrangements in respect to the NDIS. The Public Trustee is also contributing to a review of ACT rights protection agencies as well as a review of the Guardianship and Management of Property Act 1991 (GMPA).

• Satisfy the requirements of the Financial Management Act 1996 PTACT will use financial practices and maintain accounts and records which satisfy the requirements of the Financial Management Act 1996, including the associated ACT Accounting Policy Manual, modelled on the requirements of Australian Accounting Standards, and which fairly present PTACT’s financial position, operational and cash flow results for planning and reporting purposes. PTACT received an unqualified audit report in its end of year audit by the ACT Auditor-General. PTACT is continuing to work with the Auditor-General in responding to a number of management issues arising from that audit. PTACT has implemented the recommendations contained in the KPMG review of its Controls Review and is in the process of upgrading its business system TACT to version 7.3. This will assist in addressing Auditor-General reporting issues and in updating controls to mitigate fraud risk. PTACT engaged Sarah Palic and Associates to assist in improving its preparation of end of year trust account financial statements and to source suitable software to achieve that.

• Establish and maintain a high standard of Workplace Health and Safety PTACT has a high standard of Workplace Health and Safety evidenced by its comparatively low Comcare premium. All staff will again be provided with flu vaccine shots and will attend Respect Equity and Diversity (RED) supplementary training as well as anti bullying and harassment training. PTACT staff will also receive training in dealing with Mental Health issues from a client perspective. PTACT staff will be provided with appropriate training in dealing with difficult clients as well as de-briefing following critical incidents.

• Provide a productive and satisfying work environment PTACT will provide a productive and satisfying working environment for staff and a commitment to high standards of human resource management based on the principles of equal employment opportunity. PTACT has appointed a RED Contact Officer and has a continuing role as the Justice and Community Safety (JACS) Executive Sponsor for RED. During 2015-16 it is expected that further opportunities will arise for future leaders upon advertisement of vacancies arising from retirement of senior staff.

3


• Deliver on Community Service Obligations (CSOs) PTACT will undertake CSOs in respect to the provision of financial management services for persons with a decision making disability, preparing and acting as attorney under EPAs, administering trusts under $100,000 in value, examination of accounts prepared by external financial managers, drafting Wills in cases of financial hardship, responding to police call outs, arranging welfare funerals and administering low value deceased estates. PTACT will hold seminars during Wills Week in October, Seniors Week in March and Law Week in May in the coming year. PTACT will also engage with the community to promote awareness of its services and products through sponsorship of the Life’s Reflections Photographic Competition and the ACT Seniors Expo. Seniors of 60 years of age and over will continue to be provided with a free will where they appoint the Public Trustee as their executor. PTACT will be available for will-making appointments from 7.30am on weekdays to address parking needs and to assist ‘time-poor’ clients.

Risks

PTACT has identified prevailing and emerging risks to the delivery of its Statement of Intent objectives in its Fraud, Corruption and Risk Management Plan. The Plan has been prepared in consultation with the Public Trustee Investment Board and the Justice and Community Safety Directorate (JACS) and is reviewed every two years.

Those risks, identified in the Public Trustee Fraud, Corruption and Risk Management Plan, are as follows:

• poor or inappropriate investment strategy; • inadequate business systems, back-up and redundancy; • poor business performance resulting in annual deficit; • fraud or the potential for fraud; • abuse of official position; • employee mistake in Estate Administration; • inconsistent practice and procedure; • failure to insure client property; • lack of or ineffective strategic forward business planning; and • ineffective governance.

PTACT engaged KPMG Forensic in 2014 to review controls in the Financial Management Services Unit and is in the process of implementing the recommendations contained in that review. Changes include a revised form of engagement with service providers, upgraded trust accounting system and ongoing regular audits of client files.

PTACT will also review the risk profile of all of its investment clients to ensure that their assets are invested appropriate to their needs.

4


Performance measures and targets

Key Performance Indicators for 2015-16 to 2018-19

INDICATOR Actual Outcome 2013-14

2014-15 Budget

Estimated Outcome 2014-15

Planned 2015-16

Planned 2016-17

Planned 2017-18

Planned 2018-19

No. of current financial management orders made under the GMPA by ACAT

501 498 510 515 520 525 530

No. of active financial management accounts under EPA

48 53 51 51 52 52 53

No. of responses to community call-outs following death1

2 3 1 3 3 3 3

No. of welfare funerals arranged1 7 3 10 5 5 5 5

No. of examinations of accounts provided from external managers under the GMPA 2

488 490 493 496 499 502 505

No. of deceased estate administrations completed

< $100,000 3

33 33 40 41 42 43 44

No. of deceased estate administrations completed

> $100,000 3

47 55 42 43 44 45 46

No. of trusts held under legal disability <$100,000 4

340 335 350 355 360 365 370

No. of trusts held under legal disability > $100,000 4

56 58 58 59 59 60 60

Wills 752 760 740 745 750 755 760

Percentage of expenditure over total income

98% 95% 90% 88% 86% 82% 81%

Notes:

1. The number of community call-outs following death and welfare funerals arranged have increased in the 2014-15 estimated outcome from the original budget. These indicators are dependent upon the availability of family members to deal with the affairs of a deceased person and their ability to cope with the associated financial burden.

2. The number of examinations of external managers’ accounts has increased in the 2014-15 estimated outcome from the original budget due to an increase in the number of external Managers appointed by ACAT.

3. The number of deceased estate administrations completed by PTACT has decreased in the 2014-15 estimated outcome from the original budget. The number of estates finalised is impacted by the number of new and continuing estates during the subject year. PTACT is only empowered to draft wills where appointed as executor. The number of persons who die in a year having appointed the Public Trustee as executor is not reflective of the Public Trustee’s performance in respect to estate finalisations in a particular year and does not reflect a trend.

4. The number of trusts held arising from a legal disability has decreased in the 2014-15 estimated outcome from the original budget due to a decrease in the number of appointments of PTACT by the Courts. Again, this may result from a lower number of orders made.

5


Performance measures from 1 July 2015 are as follows:

Measure of Success Performance Indicator Basis for Comparison

2013-14 2014-15 2015-16 Reasonable investment performance by PTACT, reflected by market trends and giving no indication of future performance

Percentage return on the internally managed cash common fund, exclusive of PTACT fees.

3.25% 2.45%1

2.25%

Reasonable investment performance by PTACT, reflected by market trends and giving no indication of future performance

Percentage return earned on externally managed funds, relative to investment industry benchmarks, exclusive of PTACT fees - • Australian Equities Common Fund; • Australian Fixed Interest Common

Fund; • Australian Listed Property Common

Fund; and • International Equities Common Fund.

14.29%

1.91%

3.59%

19.97%

11.21%1

9.42%1

30.76%1

15.64%1

*

*

*

*

High level of client satisfaction

Percentage of clients responding who felt PTACT met or exceeded their expectations.

92%1 92% 92%

Dividend provided to the Territory

50% of Operating Result. $91,274 $134,500 $285,000

High level of compliance Unqualified audits. Unqualified Unqualified Unqualified

Reasonable level of Percentage change and number of services services provided provided, by type of service - • Financial Management Orders 5012 1.80% 5102 0.98% 515 • Active Enduring Powers of Attorney 482 6.25% 512 0 51 • Deceased Estates (under $100,000) 332 21.2% 402 2.50% 41 • Deceased Estates (over $100,000) 472 (10.6%) 422 2.38% 43 • Examination of External Managers’

Accounts 4882 1.02% 4932 .61% 496

• Trusts (under $100,000) 3402 2.94% 3502 1.43% 355 • Trusts (over $100,000) 562 3.57% 582 1.72% 59 • Wills 7522 (1.60%) 7402 0.68% 745 Revenue covers cost Percentage and dollar value of revenue that

meets costs. Rev $5.190 million2 Exp $5.200 million2

99.8%2

Rev $5.640 million2 Exp $5.380 million2

104.8%2

Rev $6.020 million3 Exp $5.310 million3

113.3%3 Reasonable cost efficiency

Cost to operate PTACT per employee. • Staff (FTE) • Cost

39.72

$130,982

402

$134,500

413

$129,512 Reasonable revenue efficiency

Revenue earned by PTACT per employee • Cost

$130,730

$141,000

$146,830

Notes: 1. Reflects estimate based upon most recent figures available (FYTD to 31 March 2015). 2. Reflects estimated outcome at 30 June 2015. 3. As per the 2015-16 Budget figures. * The purpose of external funds is for long term investments as these funds produce higher returns than cash over a certain period.

However, due to market volatility PTACT is unable to accurately forecast performance on a year by year basis.

6


Assessment of performance against 2014-15 objectives

During 2014-15, PTACT achieved the following returns on the internally managed Cash Common Fund, exclusive of fees:

Period Return

1 July 2014 to 31 July 2014 2.55 %

1 August 2014 to 30 November 2014 2.50 %

1 December 2014 to 31 January 2015 2.45 %

1 February 2015 to 31 March 2015 2.35 %

PTACT pools client funds for investment through its common funds operated under the Public Trustee Act 1985 and currently administers the Cash Common Fund, Australian Equities Common Fund, Australian Fixed Interest Common Fund, Australian Listed Property Trust Common Fund and International Equities Common Fund. Fund sizes and performances for the period 1 July 2014 to 31 March 2015 are discussed below:

PTACT Common Funds

Cash Common Fund

Funds held as cash are managed internally and invested in a range of bank and non-bank financial institution deposits. Interest returns vary with the market cash rate and, at 31 March 2015, the interest rate was 2.35 per cent. Funds under investment were $82.440 million as at 31 March 2015.

Australian Equities Common Fund

This fund is invested into a managed portfolio of stocks listed on the Australian Securities Exchange. During the year, the fund was strategically transferred from an active fund manager to a passive/index style fund manager. Performance return after fees for the calendar year has been 16.21 per cent and funds under investment were $33.8 million as at 31 March 2015.

Australian Fixed Interest Common Fund

This fund is invested in a managed pooled trust of corporate and government bonds and floating rate notes. Performance return after fees for the calendar year has been 9.42 per cent and funds under investment were $31.220 million as at 31 March 2015.

7


Australian Listed Property Trust Common Fund

This fund is invested in a managed pooled trust holding listed property trusts across retail, industrial and commercial sectors. Performance return after fees for the calendar year has been 30.76 per cent and funds under investment were $7.130 million as at 31 March 2015.

International Equities Common Fund

This fund is invested in a hedged index trust. Performance return after fees for the calendar year has been 15.64 per cent and funds under investment were $14.75 million as at 31 March 2015.

PTACT Investment Strategies

Investments are made to reflect individual client risk profiles as assessed and reviewed annually under the prudent person trustee investment principle in the Trustee Act 1925. Clients of similar risk profiles are grouped into four risk models - Income Stable, Balanced, Growth and Capital Stable for investment in appropriate allocations into the common funds. Returns are in respect to the period to 31 March 2015.

Income Stable Model Portfolio

The objective is to provide income return, moderate volatility and potential for some growth to protect the real value of the trust. It is suitable for trusts with income needs, shorter terms or conservative risk profiles. Performance return after fees for the period to 31 March 2015 has been 11.22 per cent.

Balanced Model Portfolio

The objective is to provide a balance between income and capital return with moderate volatility. It is suitable for medium term trusts or those with a mix of income and capital needs for beneficiaries. Performance after fees for the period to 31 March 2015 has been 12.87 per cent.

Growth Model Portfolio

The objective is to attain higher long-term returns in excess of inflation. A higher weighting in growth assets provides potential for superior long-term returns for clients able to accept increased volatility in the short-term and provides prospective tax efficiencies associated with franked dividends and capital growth. Performance return after fees for the period to 31 March 2015 has been 15.13 per cent.

8


Capital Stable Portfolio

Accounts requiring stability of capital are invested through the Cash Common Fund providing market interest return on daily balances with funds available at call. The Cash Common Fund is suitable for cash balances and trusts of uncertain term. Credit interest rate during the period has decreased from 2.55% to 2.35% in keeping with reductions in the market cash rate.

Employment profile

PTACT’s employees are engaged under the Public Sector Management Act 1994 (PSMA).

Staff Structure

The statistics provided in the following table include employees in receipt of salary at 31 March 2015. While the staff structure has been reviewed, there are no significant variations.

TITLE CLASSIFICATION F M CATEGORY EMPLOYMENT AUTHORITY

Chief Executive/ Public Trustee

Full time Statutory Office Holder

1 1 year Appointment

Public Trustee Act (PTA)

Manager, Investment/Funds Management (Deputy Public Trustee)

SOG B 1 Permanent Public Sector Management Act 1994 (PSMA), PTA

Manager, Wills/Estates/Trusts (Deputy Public Trustee)

SOG B 1 Permanent PSMA, PTA

Manager, Finance (Deputy Public Trustee)


Manager, Financial Management (Deputy Public Trustee)


Investigations (temporary to July 2015) (Deputy Public Trustee)


Wills Officer Legal 1 1 Permanent PSMA Estates and Trusts Trust Officer 2 5.2 Permanent PSMA Financial Management Trust Officer 2 2 Permanent PSMA Funds Management Trust Officer 2 1 Permanent PSMA Taxation Officer Trust Officer 2 1 Permanent PSMA

9


TITLE CLASSIFICATION F M CATEGORY EMPLOYMENT AUTHORITY

Senior Finance Officer Trust Officer 2 1 Permanent PSMA Finance Officer Trust Officer 1 1 Permanent PSMA Estates and Trusts Trust Officer 1 3 2 Permanent PSMA Financial Management Trust Officer 1 7 5 Permanent

2 Temporary PSMA

Administration Trust Officer 1 1 Permanent PSMA Funds Manager - GreaterGood

Trust Officer 1 1 Permanent PSMA

Property Officer Trust Officer 1 1 Permanent PSMA Unclaimed Money Trust Officer 1 1 Permanent PSMA Financial Management Trust Assistant 2 Temporary PSMA Receptionist Trust Assistant 3.2 3 Permanent

1 Temporary PSMA

Scanning (temporary) Trust Assistant .4 Temporary PSMA Estates and Trusts Trust Assistant 1 Permanent PSMA Finance Unit (Taxation Asst)

Trust Assistant .2 Temporary PSMA

Total 32 9 Total all Staff: 41(FTE)

10


Monitoring and reporting

PTACT must satisfy the requirements of the Chief Minister’s Annual Reports Directions. PTACT’s Annual Report will, amongst other things, report against the requirements of this Statement of Intent.

The Financial Management Act 1996 authorises the Treasurer to obtain financial and other statements from the Public Trustee for a stated period.

Quarterly Reporting

The Treasurer may require PTACT to report through the Chief Minister Treasury and Economic Development Directorate (CMTEDD) on a quarterly basis to enable consolidated whole-of-Government information, in the prescribed form and detail, in respect of the previous quarter:

a) Operating Statement.

b) Balance Sheet.

c) Statement of Changes in Equity.

d) Cash Flow Statement.

e) Operating Statement material variance explanations against seasonal budget provided by PTACT.

f) Status Report to supplement performance reporting to the Assembly and provide stakeholders with a summary on progress against budget highlights, significant initiatives and major projects (by the tenth working day of each quarter).

Monthly Reporting

The Treasurer may require PTACT to report through CMTEDD on a monthly basis in May/June to enable consolidated Whole-of-Government information, in the prescribed form and detail.

11


Annual Reporting

As part of preparations for end-of-year reporting, CMTEDD will advise the dates when the following documents are required to be lodged with CMTEDD and at the ACT Auditor-General's Office:

a) Certified financial statements.

b) Management Discussion and Analysis.

c) A full and accurate set of audited financial records for the preceding financial year in the form requested.

d) Consolidation packs relating to the annual financial statements, draft and final.

e) Statement of Performance.

Financial Arrangements

PTACT’s estimated operating revenue and expenditure is shown as part of the Budgeted Financial Statements.

The Public Trustee has no borrowings, guarantees, joint venture arrangements and overdraft or credit facilities.

Financial Statements

Budgeted financial statements for the 2015-16 Budget year, as well as forward estimates for the three financial years commencing 2015-16, appear below. These general purpose financial statements have been prepared in accordance with the ACT’s Model Financial Statements and include:

a) Operating Statement.

b) Balance Sheet.

c) Statement of Changes in Equity.

d) Cash Flow Statement.

e) Notes to the Financial Statements as appropriate.

12


Public Trustee for the ACT Operating Statement

2014-15 2014-15 2015-16 2016-17 2017-18 2018-19 Budget Est'd Outcome Budget Var Estimate Estimate Estimate

$'000 $'000 $'000 % $'000 $'000 $'000

Revenue 1,238 Government Payment for Outputs 1,238 1,251 1 1,292 1,308 1,324 3,970 User Charges - Non ACT Government 4,195 4,318 3 4,466 4,616 4,771

319 User Charges - ACT Government 312 321 3 332 343 355 118 Interest 121 132 9 145 159 174

0 Other Revenue 301 0 -100 0 0 0

5,645 Total Revenue 6,167 6,022 -2 6,235 6,426 6,624 Expenses

3,472 Employee Expenses 3,277 3,270 .. 3,262 3,306 3,349 477 Superannuation Expenses 483 501 4 503 497 493

1,314 Supplies and Services 1,686 1,392 -17 1,445 1,479 1,505 113 Depreciation and Amortisation 151 151 - 133 8 8

5,376 Total Expenses 5,597 5,314 -5 5,343 5,290 5,355

269 Operating Result 570 708 24 892 1,136 1,269

Other Comprehensive Income

269 Total Comprehensive Income 570 708 24 892 1,136 1,269

13


Public Trustee for the ACT Balance Sheet

2014-15 2014-15 2015-16 2016-17 2017-18 2018-19 Budget Est'd Outcome Budget Estimate Estimate Estimate

$'000 $'000 $'000 % $'000 $'000 $'000 Current Assets

5,418 Cash and Cash Equivalents 6,165 6,789 10 7,485 8,206 8,938 309 Receivables 558 554 -1 555 556 557

30 Other Current Assets 34 35 3 36 37 38

5,757 Total Current Assets 6,757 7,378 9 8,076 8,799 9,533 Non Current Assets

217 Property, Plant and Equipment 321 170 -47 37 29 21

217 Total Non Current Assets 321 170 -47 37 29 21

5,974 TOTAL ASSETS 7,078 7,548 7 8,113 8,828 9,554 Current Liabilities

122 Payables 302 315 4 329 343 357 0 Finance Leases 5 5 - 5 5 5

1,112 Employee Benefits 1,502 1,519 1 1,513 1,508 1,503 134 Other Liabilities 285 354 24 446 568 634

1,368 Total Current Liabilities 2,094 2,193 5 2,293 2,424 2,499

Non Current Liabilities

0 Finance Leases 28 28 - 28 28 28 150 Employee Benefits 105 122 16 141 157 173 111 Other 99 99 - 99 99 99

261 Total Non Current Liabilities 232 249 7 268 284 300

1,629 TOTAL LIABILITIES 2,326 2,442 5 2,561 2,708 2,799

4,345 NET ASSETS 4,752 5,106 7 5,552 6,120 6,755

REPRESENTED BY FUNDS EMPLOYED

4,015 Accumulated Funds 4,270 4,624 8 5,070 5,638 6,273 330 Reserves 482 482 - 482 482 482

4,345 TOTAL FUNDS EMPLOYED 4,752 5,106 7 5,552 6,120 6,755

14


Public Trustee for the ACT Cash Flow Statement

2014-15 2014-15 2015-16 2016-17 2017-18 2018-19 Budget

Est'd

Outcome Budget Var Estimate Estimate Estimate

$'000 $'000 $'000 % $'000 $'000 $'000

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts

754 Cash from Government for Outputs 754 755 .. 789 798 806 484 Cash from Government - CSO Payments 484 496 2 503 510 518

4,292 User Charges 4,808 4,647 -3 4,801 4,962 5,129 113 Interest Received 121 127 5 140 154 169 398 Other Receipts 2,420 464 -81 480 496 513

6,041 Operating Receipts 8,587 6,489 -24 6,713 6,920 7,135 Payments

3,510 Related to Employees 3,271 3,247 -1 3,260 3,306 3,349 466 Related to Superannuation 472 490 4 492 486 482

1,303 Related to Supplies and Services 2,975 1,381 -54 1,434 1,468 1,494 397 Other 445 462 4 477 493 510

5,676 Operating Payments 7,163 5,580 -22 5,663 5,753 5,835

365 NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES

1,424 909 -36 1,050 1,167 1,300

CASH FLOWS FROM FINANCING ACTIVITIES Payments

0 Dividends to Government 91 285 213 354 446 568 0 Financing Payments 91 285 213 354 446 568

0 NET CASH INFLOW/(OUTFLOW) FROM

FINANCING ACTIVITIES -91 -285 -213 -354 -446 -568

365 NET INCREASE / (DECREASE) IN CASH HELD 1,333 624 -53 696 721 732

5,053 CASH AT THE BEGINNING OF REPORTING PERIOD 4,832 6,165 28 6,789 7,485 8,206 5,418 CASH AT THE END OF REPORTING PERIOD 6,165 6,789 10 7,485 8,206 8,938

15


Public Trustee for the ACT Statement of Changes in Equity

2014-15 2014-15

2015-16 2016-17 2017-18 2018-19

Budget Est'd Outcome Budget Estimate Estimate Estimate $'000 $'000 $'000 % $'000 $'000 $'000

Opening Equity

3,880 Opening Accumulated Funds 3,985 4,270 7 4,624 5,070 5,638 330 Opening Asset Revaluation Reserve 482 482 - 482 482 482

4,210 Balance at the Start of the Reporting Period 4,467 4,752 6 5,106 5,552 6,120

Comprehensive Income

269 Operating Result for the Period 570 708 24 892 1,136 1,269

269 Total Comprehensive Income 570 708 24 892 1,136 1,269

0 Total Movement in Reserves 0 0 - 0 0 0 Transactions Involving Owners Affecting

Accumulated Funds

-134 Dividend Approved -285 -354 -24

-446 -568 -634

-134 Total Transactions Involving Owners Affecting

Accumulated Funds -285 -354 -

24 -446 -568 -634

Closing Equity

4,015 Closing Accumulated Funds 4,270 4,624 8 5,070 5,638 6,273 330 Closing Asset Revaluation Reserve 482 482 - 482 482 482

4,345 Balance at the End of the Reporting Period 4,752 5,106 7 5,552 6,120 6,755

16


Notes to the Financial Statements

Significant variations are as follows:

Operating Statement

• User Charges – Non ACT Government:

- The increase of $0.225 million in the 2014-15 estimated outcome from the original budget is due to an increase in demand for PTACT’s services and products.

• Other Revenue:

- The increase of $0.301 million in the 2014-15 estimated outcome from the original budget is due to successful claims on PTACT’s fidelity insurance policy with ACT Insurance Authority (ACTIA) as a result of irregularities discovered in client accounts.

- The decrease of $0.301 million in the 2015-16 Budget from the 2014-15 estimated outcome is due to the finalisation of investigations in relation to the irregularities found in clients accounts.

• Employee Expenses:

- The decrease of $0.195 million in the 2014-15 estimated outcome from the original budget is due to the retirement of several higher paid Managers at the top of their increment and replacement with Managers at entry level increment.

• Supplies and Services:

- The increase of $0.372 million in the 2014-15 estimated outcome from the original budget is due to costs associated with the investigation of irregularities found in clients accounts. These costs will however be recovered through PTACT’s fidelity insurance.

- The decrease of $0.294 million in the 2015-16 Budget from the 2014-15 estimated outcome is due to the finalisation of investigations in relation to the irregularities found in clients accounts.

• Depreciation and Amortisation:

- The increase of $0.038 million in the 2014-15 estimated outcome from the original budget is due to the revaluation of assets as at 30 June 2014. This revaluation was not reflected in the original budget.

17


Balance Sheet

• Cash and Cash Equivalents

- The increase of $0.747 million in the 2014-15 estimated outcome from the original budget is due to a combination of the flow-on effects of the 2013-14 audited outcome and an increase in sales and payables.

- The increase of $0.624 million in the 2015-16 Budget from the 2014-15 estimated outcome is reflective of the increase in the Operating Result for each period and an increase in sales and payables.

• Receivables:

- The increase of $0.249 million in the 2014-15 estimated outcome from the original budget is associated with the timing of the receipt of payment for sales and is reflective the overall increase in sales.

• Property, Plant and Equipment:

- The increase of $0.104 million in the 2014-15 estimated outcome from the original budget is due to the revaluation of assets as at 30 June 2014.

- The decrease of $0.151 million in the 2015-16 Budget from the 2014-15 estimated outcome is due to the increase in the cost of depreciation after the revaluation of assets at 30 June 2014.

• Payables:

- The increase of $0.180 million in the 2014-15 estimated outcome from the original budget is due to the timing of the payment of invoices received and is associated with the time of receipt on invoices from creditors at year end.

• Employee Benefits:

- The increase of $0.345 million in the 20 14-15 estimated outcome from the original budget is due to an increase in benefits accruing to staff in the form of Annual Leave and Long Service Leave entitlements.

• Other Liabilities:

- The increase of $0.151 million in the 2014-15 estimated outcome from the original budget and the increase of $0.069 million in the 2015-16 Budget from the 2014-15 estimated outcome is reflective of the increase in the Operating Result for each period.

Statement of Changes in Equity

Variations in the statement are explained in the notes above.

18


Statement of Cash Flow

Variations in the statement are explained in the notes above.

Glossary of terms and abbreviations

• ACAT - ACT Civil and Administrative Tribunal

• CMTEDD - Chief Minister Treasury and Economic Development Directorate

• CSOs - Community Service Obligations

• EPA - Enduring Powers of Attorney

• FTE - Full Time Equivalent

• GMPA - Guardianship and Management of Property Act 1991

• JACS - Justice and Community Safety

• NDIS - National Disability Insurance Scheme

• PSMA - Public Sector Management Act 1994

• PTA - Public Trustee Act 1985

• PTACT - Public Trustee for the ACT

• RED - Respect Equity and Diversity

19

public trustee for the act · nature and scope of activities ptact provides the act government and...

Documents